Are closing costs tax deductible? I recently refinanced and I would like to deduct closing costs for a mortgage refinance but I am not certain this is allowed by the IRS.
You can only deduct closing costs for a mortgage refinance if the costs are considered mortgage interest or real estate taxes. You closing costs are not tax deductible if they are fees for services, like title insurance and appraisals.
You can deduct these items considered mortgage interest:
- Mortgage insurance premiums — for contracts issued from 2012 to 2017 but paid in the tax year
- Points — since they’re considered prepaid interest. You must usually allocate points over the life of the loan.
You can’t deduct your mortgage insurance premiums if your adjusted gross income (AGI) is more than:
- 54500 if you’re married filing separately
Can you deduct the sales tax on a vehicle you bought? Learn more from the tax experts at H&R Block.
Can you deduct the cost of your tax software? Learn more from the tax experts at H&R Block.
Headed back to college and wondering what school expenses are tax deductible? We'll tell you here...
Can you deduct business vehicle expenses on your taxes? Learn more about business vehicle deductions and get tax answers at H&R Block.